All Forum Posts by: Justin Hoggatt

@Jenn W., I always suggest TenantCloud.  I have no affiliation, and I haven't actually used them in almost 2 years, but I used them when I didn't have as many doors and it satisfied my needs really well.  I know other people that have been pretty happy with them.  From my experience, it's made for the people that don't have a ton of doors, and then if you do have a good amount you'll likely be looking to switch and get into something more robust.

@Peter Morgan, I personally don’t think you need to tell them. If they rent the place, they still get the unit and they still get to stay even if you do sell it. From my experience, tenants don’t generally care about the turnover. Unless, of course, the new owner doesn’t take care of the property. But I don’t think that really matters for right now on prospective tenants. I think telling tenants that you could possibly sell just creates confusion and worry. I think for the most part tenants understand situations can change and just keep it simple. Also, as far as I know there are no laws that say you need to tell anyone about that and so that “disclosure” isn’t needed. The buildings I have acquired have always been a surprise to tenants and they have always been very nice about it and flexible. The main issues I’ve experienced are with the tenants that don’t like me enforcing the rules and they end up leaving.

I have received the bird issue before (pigeons).  I think that "it depends".  If they are a tenant that has legitimate complaints, then you can continue to try and do your best to help them.  If they are annoying, then yes, tell them it's not something you can help with.  It's hard to keep nature at bay when we live in natural environments.

With that being said, I did take care of the pigeons ASAP.  The reason is because they can cause damage and disgust on the property. I think of them as air rats and the just hang out and poop all over the place.  For you, it's something of a preference.  If you react to everything the tenant throws your way, they'll likely continue.

Hey fellow BP Members!

We're in a bit of a middle ground for the type of service we're offering for the products/offerings that we're working on.  We are RV Park Investors and Managers and the type of asset class we go after is a bit different than many of the opportunities available on here.

I encourage you to take a look at our website at https://happycampercapital.com... There may be a beneficial way we can work together.   We love to help others realize additional potential and provide other ideas and offerings outside just the "normal" homes and apartments.  

If you'd like to connect, we'd love to! If you have any questions, let us know!  Let's find a time...what works for you?

@Kevin Connell - I'm glad you asked this question and put yourself out there. I think that you're right in the fact that you are looking for help in understanding the market and values and a good agent/broker can help with that. Maybe you'll find one that can help you a bit, but be mindful of their time and don't waste it. Maybe they will get something out of if you do any flips and then they can sell your houses for you. They will also be able to help you with contracts and understanding processes of closing, but I think it would best for you to try and find a good mentor, a good training program, or hit up your local Real Estate Investors club to get the ball rolling. Wholesaling, like others said, isn't really an MLS thing and requires prospecting both for sellers and buyers. Keep the research going and you'll figure it out!

Are you having multiple offers? Do you have a competing situation? Did you already get an appraisal on the property? Sometimes the appraiser will adjust a bit on the appraisal if there are offers coming in above the price. The broker can provide the multiple offers to the appraiser to show that the market is higher than the price. Let your broker do a bit of convincing to the appraiser on your behalf. Or, maybe your doing a FSBO?

If you're receiving offers above the asking price and/or the appraisal is still low, the best way to negotiate with the buyers is to have them put in an appraisal gap. If they are unwilling to waive the appraisal contingency, then having them state that they will cover a gap up to an amount equal to $xx,xxx, then the appraisal can be lower than the purchase price and the buyers will still need to move forward.  Otherwise, putting together an offer with such a high offer is a bit pointless because it will then just need to be adjusted later down to the appraisal amount or the deal possibly dies.

My suggestion is to get the lease in place.  Think of it kind of like an operating agreement between business partners.  The lease is something to fall back on, even though you may be friends and you've initiated the hand shake agreement.  Think of it as protection on both of your parts.  There are many locations to get a good sample lease template that you can use.  If there are any rules you want to add, you still can and just create addenda to the lease.  If the house is older than 1976, make sure you have your Lead Based Paint disclosure, and then add any rules you need to setup.  It's also going to be important to set that end date as well, especially if you plan on leasing out the whole thing, sell it, or otherwise.  If you have nothing setup, just think how hard it will be to get them out when you need them out and they aren't cooperating.  Being a roommate with anyone is hard and it may not always be rosy in the end, right!?

@Sherree Ruston, I feel your sentiments about feeling overwhelmed.  Many times it can be, especially when you aren't sure of the route you want to take.  It's overwhelming trying to decide since there are so many ways to invest in real estate, but at the same time, so exciting because there is always more to learn!

I don't know your thoughts about buying your second home that you can move into and move out of your current home.  Often if you can rent out your current home and show that as future income on the home, you won't need to come to the table with as much down payment on your primary residence that you're buying next.  Now, yes, you need to use that as your primary residence, and sometimes plans change on how long you plan to do that for.

I guess the question is how much down payment you do actually have for another home.  Talk with a good lender, and if you don't have one, ask for a good referral.  They'll be able to help you navigate some good options for you.

@Donald F., I think that it sounds pretty good.  Although, I don't really like the terms that the owner is looking for so I would consider alternative financing methods.

An example of a park we're in the process of buying right now we were able to find a local lender that is aggressive with financing.  A non SBA loan with 3.955%, 25 year am, 7 year term, 20% down.  I think if it is actually a 13% cap then you'll be able to find a good option.  

For what to dive deeper on, I'm not sure where you've started. Otherwise, start with their P&L's for the last 3 years, tax returns, etc. Have you seen the park yet? I'd get an LOI out to him/her to get yourselves interested in each other and then start digging some more. You can look at their true costs, the condition of the park for Capex needs, the reservations that happen, leases that may exist, get inspections - I'm sure you know all this. I also think you'll want to focus on exactly what the managers/tenants are doing and whether they are doing a good job and really want to stay. You never know, maybe they are doing more of a favor for the current owner?

I'd be happy to look at it and let you know my opinion if you'd like.  

For me, some of it is deciding what to do with the money and taking on another project of what to do with the money.  I know that it's possible the 1031x goes away for the most part and that could also be good incentive, but I also concern myself with over leveraging.  I believe that we are going to see a downturn and that 'could' mean a rent decrease as well.  I'm liking the idea that my properties are renting and if the rents do go down then I will be easily covered and not stressed about how to pay my bills. I guess, ultimately, sometimes it's just easier to hold as well.  Not to mention that at no point have I been unsatisfied with the appreciation I'm seeing if we don't see a downturn anytime soon.